Vending Machines

Demand to grow more than 5% per annum through 2006

US demand for vending machines is forecast to rise over five percent per year through 2006 (including price increases). After a sluggish year in 2001, advances will rebound due to the rising number of vending locations, which will create equipment demand. Workplaces, in particular industrial and office settings, accounted for the majority of vending locations in 2001, a trend that is expected to continue through 2006.

Refrigerated foods, beverages to pose best growth potential

Vending machines expected to experience the best growth are beverage machines, as well as refrigerated food vending machines. These products will benefit not only from the busy lifestyles of US consumers, but from the widening number of food and beverage choices available. Regulation will continue to adversely impact cigarette machines, as a rising number of areas ban smoking in bars and restaurants, which have been the last bastion of public smoking. The growing amount of vending equipment in stock will result in greater replacement parts demand, although the improving durability of new equipment will limit gains to some extent. Technology and regulation will play an increasingly important role in technologies that will spur gains is the diffusion of cashless vending, which allows consumers to purchase via alternative means such as a cellular phone. Remote monitoring equipment will also create opportunities, since this technology would allow vendors to more efficiently manage their routes.

Industrial, office sectors to remain largest markets

The industrial sector comprised the largest portion of vending machine locations in 2001, followed by offices. Opportunities will continue in these areas due to continuing growth in capital investment, as well as rising construction expenditures. Advances will be above average in the health care market, due to both an aging population and rising health care expenditures.

Study coverage

Details on these and other findings are available in Vending Machines, the new Freedonia study. This study presents historic data through 2001 plus forecasts to 2006 and 2011 by product and market. It also includes demand data by US region, as well as an assessment of various vended products. In addition, the study evaluates market shares and profiles 26 industry participants.